Turkish gold imports go through the roof in Nov ’14

The gold imports by Turkey surged to record high during the month of November 2014. According to data published by the Istanbul Gold Exchange, the country’s gold imports totaled 46.9 tons worth nearly $2 billion. This is the highest gold imports in almost 1.5 years, it added.

The Nov ’14 gold imports by Turkey surged by over 600% when compared with the imports of 6.6 tons of gold bullion during October. When compared with the imports during the same month a year ago, the Nov ’14 more than doubled. Turkey had imported 19.3 tons of gold during November 2013.

However, the cumulative gold imports by Turkey during the initial eleven-month period of the year declined 56% from 270.70 tons in 2013 to 119.10 tons in 2014. It must be noted that the country had reported heavy intake of gold during 2013 on account of significant boom in business with Iran. The Turkish gold imports had touched record level of 302.30 tons, equivalent to $16 billion.

Turkey’s gold production is insufficient to meet its demand. The country imports gold to sell it to gold buyers in India, Iran and Middle East. In addition, many Turks consider gold as a traditional investment as a hedge against declining currency. The Turks also consume huge quantities of gold in the form of jewelry as gift on special occasions.

Meanwhile, higher gold imports worsened the country’s trade deficit. The deficit for the month of November stood at $8.3 billion, almost $1 million higher than estimates.